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Pro-Dex, Inc. Announces Fiscal 2025 Second Quarter and Six-Month Results

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Pro-Dex (PDEX) reported strong financial results for Q2 FY2025. Net sales increased 33% to $16.8 million, driven by $3.1 million in shipments of next-generation orthopedic handpieces and $1.6 million increase in repair revenue from their largest customer.

Gross profit rose 81% to $5.1 million, with gross margin improving by 8 percentage points to 30%. Operating income surged 247% to $2.7 million, while net income reached $2.0 million ($0.61 per diluted share), up from $500,000 ($0.14 per diluted share) in Q2 FY2024.

For the six-month period, net sales grew 29% to $31.7 million, with net income of $4.5 million ($1.33 per diluted share), compared to a net loss of $115,000 in the prior year period. The company expects continued revenue growth in Q3 and Q4 due to ongoing production shipments of the next-generation handpiece.

Pro-Dex (PDEX) ha riportato risultati finanziari robusti per il secondo trimestre dell'anno fiscale 2025. Le vendite nette sono aumentate del 33% a 16,8 milioni di dollari, trainate da 3,1 milioni di dollari in spedizioni di strumenti ortopedici di nuova generazione e un incremento di 1,6 milioni di dollari nei ricavi per riparazioni dal loro cliente più grande.

Il profitto lordo è aumentato dell'81% a 5,1 milioni di dollari, con un margine lordo che migliora di 8 punti percentuali, raggiungendo il 30%. Il reddito operativo è schizzato in alto del 247% a 2,7 milioni di dollari, mentre il reddito netto ha raggiunto 2,0 milioni di dollari (0,61 dollari per azione diluita), rispetto a 500.000 dollari (0,14 dollari per azione diluita) nel secondo trimestre dell'anno fiscale 2024.

Per il periodo di sei mesi, le vendite nette sono cresciute del 29% a 31,7 milioni di dollari, con un reddito netto di 4,5 milioni di dollari (1,33 dollari per azione diluita), rispetto a una perdita netta di 115.000 dollari nel periodo dell'anno precedente. L'azienda prevede una continua crescita dei ricavi nel terzo e quarto trimestre grazie alle spedizioni in corso degli strumenti di nuova generazione.

Pro-Dex (PDEX) reportó resultados financieros sólidos para el segundo trimestre del año fiscal 2025. Las ventas netas aumentaron un 33% a 16.8 millones de dólares, impulsadas por 3.1 millones de dólares en envíos de instrumentos ortopédicos de próxima generación y un aumento de 1.6 millones de dólares en ingresos por reparaciones de su mayor cliente.

La utilidad bruta creció un 81% a 5.1 millones de dólares, con un margen bruto que mejoró en 8 puntos porcentuales hasta el 30%. El ingreso operativo se disparó un 247% a 2.7 millones de dólares, mientras que el ingreso neto alcanzó 2.0 millones de dólares (0.61 dólares por acción diluida), en comparación con 500,000 dólares (0.14 dólares por acción diluida) en el segundo trimestre del año fiscal 2024.

Para el periodo de seis meses, las ventas netas crecieron un 29% a 31.7 millones de dólares, con un ingreso neto de 4.5 millones de dólares (1.33 dólares por acción diluida), en comparación con una pérdida neta de 115,000 dólares en el mismo período del año anterior. La empresa espera continuar con el crecimiento de ingresos en el tercer y cuarto trimestre debido a los envíos en curso de los instrumentos de próxima generación.

Pro-Dex (PDEX)는 2025 회계연도 2분기에 강력한 재무 실적을 보고했습니다. 순매출은 1680만 달러로 33% 증가했으며, 차세대 정형외과 핸드피스의 310만 달러의 출하와 최대 고객으로부터의 수리 수익 증가로 인해 증가했습니다.

총 이익은 510만 달러로 81% 증가했으며, 총 이익률은 8% 포인트 상승해 30%에 달했습니다. 운영 소득은 270만 달러로 247% 증가했으며, 순이익은 200만 달러로 ($0.61 희석 주당) 증가했습니다. 이는 2024 회계연도 2분기의 50만 달러 ($0.14 희석 주당)에서 증가한 것입니다.

6개월 동안 순매출은 3170만 달러로 29% 증가했으며, 순이익은 450만 달러 ($1.33 희석 주당)로, 전년 동기에는 11만 5000달러의 순손실이 발생했습니다. 회사는 차세대 핸드피스의 지속적인 생산 발송으로 인해 3분기와 4분기에 계속된 수익 성장을 예상합니다.

Pro-Dex (PDEX) a annoncé de solides résultats financiers pour le deuxième trimestre de l'exercice 2025. Les ventes nettes ont augmenté de 33 % pour atteindre 16,8 millions de dollars, soutenues par 3,1 millions de dollars d'expéditions de pièces orthopédiques de nouvelle génération et une hausse de 1,6 million de dollars des revenus de réparation de son plus grand client.

Le bénéfice brut a augmenté de 81 % pour atteindre 5,1 millions de dollars, avec une marge brute s'améliorant de 8 points de pourcentage à 30 %. Le résultat d'exploitation a bondi de 247 % pour atteindre 2,7 millions de dollars, tandis que le bénéfice net a atteint 2,0 millions de dollars (0,61 dollar par action diluée), contre 500 000 dollars (0,14 dollar par action diluée) au deuxième trimestre de l'exercice 2024.

Pour la période de six mois, les ventes nettes ont augmenté de 29 % pour atteindre 31,7 millions de dollars, avec un bénéfice net de 4,5 millions de dollars (1,33 dollar par action diluée), par rapport à une perte nette de 115 000 dollars au cours de la période de l'année précédente. L'entreprise prévoit une croissance continue des revenus au troisième et quatrième trimestre en raison des expéditions en cours des pièces de nouvelle génération.

Pro-Dex (PDEX) hat im zweiten Quartal des Geschäftsjahres 2025 starke finanzielle Ergebnisse berichtet. Der Nettoumsatz stieg um 33% auf 16,8 Millionen Dollar, angetrieben durch 3,1 Millionen Dollar an Lieferungen von Handstücken der nächsten Generation und einem Anstieg der Reparatureinnahmen um 1,6 Millionen Dollar von ihrem größten Kunden.

Der Bruttogewinn stieg um 81% auf 5,1 Millionen Dollar, während die Bruttomarge um 8 Prozentpunkte auf 30% anstieg. Das Betriebsergebnis schoss um 247% auf 2,7 Millionen Dollar, während der Nettogewinn 2,0 Millionen Dollar erreichte (0,61 Dollar pro verwässerter Aktie), im Vergleich zu 500.000 Dollar (0,14 Dollar pro verwässerter Aktie) im zweiten Quartal des Geschäftsjahres 2024.

Im Zeitraum von sechs Monaten wuchsen die Nettoumsätze um 29% auf 31,7 Millionen Dollar, mit einem Nettogewinn von 4,5 Millionen Dollar (1,33 Dollar pro verwässerter Aktie), verglichen mit einem Nettverlust von 115.000 Dollar im Vorjahreszeitraum. Das Unternehmen erwartet weiterhin Wachstum bei den Einnahmen im dritten und vierten Quartal aufgrund laufender Produktionslieferungen der Handstücke der nächsten Generation.

Positive
  • Net sales increased 33% YoY to $16.8M in Q2 FY2025
  • Gross margin improved by 8 percentage points to 30%
  • Operating income grew 247% to $2.7M
  • Net income per diluted share increased to $0.61 from $0.14 YoY
  • Six-month net sales up 29% to $31.7M
  • Strong backlog indicating future growth potential
Negative
  • Operating expenses increased 18% to $2.4M due to higher personnel costs
  • Heavy reliance on largest customer for revenue growth
  • Volatile valuation of marketable equity investments affecting net income

Insights

Pro-Dex's Q2 FY2025 results reveal exceptional operational execution and market momentum. The 33% revenue growth to $16.8 million demonstrates strong market penetration, particularly through their strategic relationship with their largest customer. The 8-point improvement in gross margin to 30% reflects enhanced operational efficiency and a more favorable product mix.

Three key factors deserve attention:

  • The successful launch and production ramp of the next-generation orthopedic handpiece, contributing $3.1 million in quarterly revenue, indicates strong product innovation and market acceptance
  • The $1.6 million increase in repair revenue suggests growing installed base and recurring revenue opportunities
  • The 18% increase in operating expenses, primarily in R&D and personnel, signals strategic investments in future growth

The company's ability to quadruple quarterly net income while investing in growth initiatives demonstrates excellent operational leverage. The management's comments about staffing up for increased backlog suggests strong demand visibility for upcoming quarters. The combination of product innovation, growing service revenue and operational efficiency improvements positions Pro-Dex favorably in the medical device market.

IRVINE, CA / ACCESS Newswire / January 30, 2025 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2025 second quarter ended December 31, 2024. The Company also filed its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2025 with the Securities and Exchange Commission today.

Quarter Ended December 31, 2024

Net sales for the three months ended December 31, 2024, increased $4.2 million, or 33%, to $16.8 million from $12.6 million for the three months ended December 31, 2023, primarily due to the shipment of $3.1 million of our largest customer's next generation orthopedic handpiece as well as an increase in repair revenue of $1.6 million similarly generated from our largest customer. As previously disclosed, we supported our largest customer's limited market release quantities of their next generation end effector last fiscal quarter and this quarter we began production shipments. We anticipate that the third and fourth quarters will reflect increases in revenue compared to the corresponding periods of the prior year due to the continued production shipments of this next generation handpiece.

Gross profit for the three months ended December 31, 2024, increased $2.3 million, or 81%, to $5.1 million from $2.8 million for the same period in fiscal 2024. Gross margin increased by 8 percentage points to 30% for the three months ended December 31, 2024, compared to 22% for the corresponding period of the prior fiscal year. The improvement in gross margin is primarily due to increased sales and favorable product mix.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended December 31, 2024, increased $355,000, or 18%, to $2.4 million compared to $2.0 million in the prior fiscal year's corresponding quarter, reflecting increases in both research and development costs as well as general and administrative expenses mostly due to higher personnel related expenses.

Operating income for the quarter ended December 31, 2024, increased $1.9 million, or 247%, to $2.7 million compared to $777,000 for the prior fiscal year's corresponding quarter. The increase is attributable to higher sales and improved gross margins.

Net income for the quarter ended December 31, 2024, was $2.0 million or $0.61 per diluted share, compared to $500,000, or $0.14 per diluted share, for the corresponding quarter in fiscal 2024.

Six Months Ended December 31, 2024

Net sales for the six months ended December 31, 2024, increased $7.2 million, or 29%, to $31.7 million from $24.5 million for the six months ended December 31, 2023, due primarily to $4.7 million in shipments of the newest generation handpiece we sell our largest customer as well as $2.7 million in increased repair revenue from the orthopedic surgical handpiece that we sell to our largest customer.

Gross profit for the six months ended December 31, 2024,increased $3.8 million, or 58%, compared to the same period in fiscal 2024 due to increased sales and favorable product mix. Our gross margin increased by 6 percentage points to 32% for the six months ended December 31, 2024, compared to 26% for the corresponding period of the prior fiscal year.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the six months ended December 31, 2024, increased $666,000, or 17%, to $4.5 million compared to $3.9 million in the prior fiscal year's corresponding period. The increase is related to increased research and development costs and general and administrative expenses mostly due to higher personnel related expenses.

Operating income for six months ended December 31, 2024, increased $3.1 million, or 119%, to $5.7 million compared to $2.6 million for the corresponding period of the prior fiscal year. The increase in operating income is attributable to higher sales and gross profit offset by the higher operating expenses described above.

Net income for the six months ended December 31, 2024, was $4.5 million or $1.33 per diluted share, compared to a net loss of $115,000, or $0.03 per diluted share for the six months ended December 31, 2023. Our net income for the six months ended December 31, 2024, contains unrealized gains on our marketable equity investments of $510,000 and our net loss for the six months ended December 31, 2023, contained unrealized losses on our marketable equity investments of $2.6 million. All of our investments are recorded at estimated fair value, and the valuation can be highly volatile.

CEO Comments

"We are pleased with our second quarter and year-to-date results." said Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer. "We are ramping up our staff to meet the commitments of our increased backlog." Mr. Van Kirk continued, "We are excited about our continued sales growth and looking forward to the challenges ahead."

About Pro-Dex, Inc.:

Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Pro-Dex, Inc. also sells rotary air motors to a wide range of industries. Pro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's website at www.pro-dex.com.

Statements herein concerning the Company's plans, growth, and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments, and future performance, as well as management's expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.

(tables follow)

PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)

December 31,
2024

June 30,
2024

ASSETS

Current assets:

Cash and cash equivalent

$

66

$

2,631

Investments

4,671

4,217

Accounts receivable, net of allowance for expected credit losses of $27 and $0 at December 31, 2024 and at June 30, 2024, respectively

18,467

13,887

Deferred costs

152

262

Inventory

19,611

15,269

Prepaid expenses and other current assets

1,333

345

Total current assets

44,300

36,611

Land and building, net

6,108

6,155

Equipment and leasehold improvements, net

5,443

5,024

Right-of-use asset, net

1,265

1,473

Intangibles, net

40

54

Deferred income taxes, net

1,555

1,555

Investments

1,619

1,563

Other assets

44

42

Total assets

$

60,374

$

52,477

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

5,689

$

4,513

Accrued liabilities

5,234

3,359

Income taxes payable

303

632

Deferred revenue

-

14

Notes payable

5,913

4,374

Total current liabilities

17,139

12,892

Lease liability, net of current portion

939

1,182

Notes payable, net of current portion

10,474

7,536

Total non-current liabilities

11,413

8,718

Total liabilities

28,552

21,610

Shareholders' equity:

Common stock; no par value; 50,000,000 shares authorized; 3,260,390 and 3,363,412 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively

366

3,917

Retained earnings

31,456

26,950

Total shareholders' equity

31,822

30,867

Total liabilities and shareholders' equity

$

60,374

$

52,477

PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)

Three Months Ended
December 31,

Six Months Ended
December 31,

2024

2023

2024

2023

Net sales

$

16,793

$

12,588

$

31,686

$

24,526

Cost of sales

11,721

9,786

21,464

18,066

Gross profit

5,072

2,802

10,222

6,460

Operating expenses:
Selling expenses

49

37

98

63

General and administrative expenses

1,389

1,200

2,635

2,195

Research and development costs

942

788

1,784

1,593

Total operating expenses

2,380

2,025

4,517

3,851

Operating income

2,692

777

5,705

2,609

Interest expense

(204

)

(139

)

(357

)

(271

)

Unrealized gain (loss) on marketable equity investments

77

(40

)

510

(2,593

)

Interest and other income

21

22

46

46

Income (loss) before income taxes

2,586

620

5,904

(209

)

Income tax benefit (expense)

(546

)

(120

)

(1,398

)

94

Net income (loss)

$

2,040

$

500

$

4,506

$

(115

)

Basic net income (loss) per share:

Net income (loss) per share

$

0.63

$

0.14

$

1.36

$

(0.03

)

Diluted net income (loss) per share:

Net income (loss) per share

$

0.61

$

0.14

$

1.33

$

(0.03

)

Weighted-average common shares outstanding:

Basic

3,261,145

3,546,901

3,314,207

3,546,819

Diluted

3,337,337

3,611,701

3,378,862

3,546,819

Common shares outstanding

3,260,390

3,541,045

3,260,390

3,541,045

CONTACT:

Richard L. Van Kirk,
Chief Executive Officer
(949) 769-3200

SOURCE: Pro-Dex, Inc.



View the original press release on ACCESS Newswire

FAQ

What was Pro-Dex (PDEX) Q2 2025 revenue growth?

Pro-Dex reported Q2 FY2025 revenue growth of 33%, with net sales increasing to $16.8 million from $12.6 million in Q2 FY2024.

How much did PDEX earnings per share increase in Q2 2025?

PDEX earnings per diluted share increased to $0.61 in Q2 FY2025, up from $0.14 in Q2 FY2024.

What drove Pro-Dex (PDEX) revenue growth in Q2 2025?

The revenue growth was primarily driven by $3.1 million in shipments of next-generation orthopedic handpieces and a $1.6 million increase in repair revenue from their largest customer.

What was PDEX's gross margin improvement in Q2 2025?

PDEX's gross margin improved by 8 percentage points to 30% in Q2 FY2025, compared to 22% in Q2 FY2024.

What is Pro-Dex (PDEX) six-month performance for FY2025?

For the first six months of FY2025, PDEX reported net sales of $31.7 million (up 29%) and net income of $4.5 million ($1.33 per diluted share), compared to a net loss in the prior year period.

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Medical Instruments & Supplies
Surgical & Medical Instruments & Apparatus
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